Alberta: Daylight obtains large Duvernay position

Daylight Energy Ltd., Calgary, said it owns and controls more than 130,000 net acres in Alberta in the Duvernay shale play.

Daylight said it accumulated several contiguous blocks of Duvernay rights in its Pembina core area, where it has facilities in place. The company has also assembled Duvernay rights in the Kaybob area.

The Duvernay prospect in Alberta has recently attracted significant industry attention, with many industry participants comparing the Duvernay to the Eagle Ford shale development in Texas, Daylight said. The Duvernay is considered to be the primary source rock in the Western Canadian basin.

The company believes the Duvernay holdings to be prospective for oil and liquids-rich natural gas. Daylight plans to initiate a four-well pilot project in the first quarter of 2012, with an initial three wells planned at Pembina and one at Kaybob.

The company also acquired complementary Montney rights at Wapiti and additional lands adjacent to its Medicine Lodge Cardium asset that are prospective for liquids-rich gas.

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